05-11-1995 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD MEETING
MAY 11, 1995
The meeting of the Miami Shores Village Pension Board was held on May 11, 1995, at the Miami
Shores Village Hall. The meeting was called to order by Mr. Louis Imburgia, Jr. at 8:01 A.M.
The following were in attendance:
Board Members: Louis Imburgia, Jr., Chairman
Michael R. Couzzo, Jr., Secretary
Joseph Charles
Tim Dearden
William Heffernan
Walter Latimer
Richard Trumble
Also Present: Patricia Varney, Plan Administrator
William Fann, Village Attorney
Don Bryant, Barnett Bank Trust
Raymond Dunleavy, Sun Bank
Philip Robert, Sun Bank
Karen Cole, Merrill Lynch
1. REPORT FROM DON BRYANT, BARNETT BANK
Mr. Don Bryant reported that the account's total market value ending 3/31/95 was
$4,635,786. The account return for the quarter was up 6.73%. The fixed income return
was up 4.89%, compared to 5.0% of Lehman Government Group. The equity
investment return was up 8.29% compared to 9.7% of the S&P 500.
2. REPORT FROM PHILIP ROBERT, SUN BANK
Mr. Philip Robert reported that the account's total market value ending 3/31/95 was
$4,791,807. The account return for the quarter was up 7.6%. The equity portfolio gave
a 9.8% return for the quarter compared to 9.7% of the S&P 500. The fixed income return
was up 4.5% compared to 5.0% of the Lehman Gov't.
Mr. Robert also addressed the management changes that occurred in the firm at the end of
the quarter. Three senior managers left their positions to form a new investment
management firm. This was clearly a monetary decision on their part. Mr. John Race,
who was in charge of the High Grade Equity Funds was replaced by Mr. Elliot Purvey.
Mr. Greg DePrince, who was responsible for the day-to-day management of the
Value/Income style portfolios was replaced by Mr. Mills Riddick. Mr. Victor Zollo was
responsible for marketing nationwide. A replacement has not yet been named.
Mr. Latimer commended Sun Bank on the strong quarter.
3. REPORT FROM KAREN COLE, MERRILL LYNCH
Ms. Cole reported that as of 3/31/95, the fund had a total market value of $9,786,715.
For the quarter, the fund earned a 6.9% return, ranking in the top 39%. However, it was
slightly below the target index return of 7.3%. For the year ending March 31, 1995,
the total return was 7.2%, ranking in the 65th percentile of the balanced fund sample. The
portfolio allocation is divided into 56% equities, 39.9% bonds, 3.7% real estate and
0.4% cash & equivalents. The fund has always been more aggressive in equities. The one
and two year return for the total fund lagged behind the target index. One of the factors
was due to the real estate.
The equity portfolio returned 9.1% for the quarter compared to 9.7% of the S&P 500.
The bond portfolio was up 4.7% for the quarter compared to 5.0% of the Lehman
Govt/Corp.
4. DISCUSSION/ACTION REGARDING SGT. MANOS' APPLICATION FOR
DISABILITY BENEFITS
Patricia Varney explained Sgt. Manos' application for disability benefits. After obtaining
a report from his primary physician, Sgt. Manos has decided that he can no longer perform
his duties as a police officer. He therefore requests consideration of the Board to receive
disability pension.
According to the ordinance, the Board must recommend a doctor to examine Sgt. Manos.
Mr. Scott Davis, the Personnel Director has recommended Dr. Jay Stein. Once the report
is received from the physician, a special Pension Board meeting will be called to decide
on Sgt. Manos' application. At that time, the actuary calculation of benefits will also be
presented. Mr. Heffernan inquired if Dr. Stein would be the required examining physician
annually. Ms. Varney replied that the Board will choose a physician each year.
Mr. Heffernan made a motion to appoint Dr. Jay Stein as the examining physician for Sgt.
Manos. Mr. Latimer seconded the motion and it was passed unanimously.
Discussion ensued regarding long term disability and the clarity of the application process.
Since Sgt. Manos has been out of work since December, Officer Dearden inquired
whether long term disability applied and when it should begin. Ms. Varney replied that
long term disability is received the first day of the month after the application has been
approved by the Board.
Concern arose due to the length of time between Sgt. Manos' leave and the application
being processed. Officer Dearden asked if officers should do anything differently when
applying for disability. Ms. Varney replied that benefits should be applied for as soon as
the officer knows he is going on disability. Because Sgt. Manos just recently decided to
apply for disability on April 27, 1995, the application was processed in a timely manner.
The ordinance states the officer must enter a written request to the Board before any
action can be taken. Mr. Latimer asked if the employees in general are aware of this
policy. Mr. Dearden stated that the police officers were not. Ms. Varney referred to the
Summary Plan for employees that explains disability benefits. Mr. Heffernan suggested
that the Plan be reviewed as to clarity. He also inquired about the frequency of
explanation of benefits to employees. Mr. Davis replied that employees are informed at
their initial orientation. Updated information is also given once a year. Mr. Charles
commented that beyond the employee knowing, it is also the responsibility of the
supervisor to take action.
Mr. Couzzo explained that in Sgt. Manos' case, it was a matter of employee dedication.
Since Sgt. Manos has been employed by the Village for nineteen years, it was a difficult
decision. He still wanted to contribute to the force, but could not provide the quality of
service expected due to his existing condition. Mr. Charles stated that it may be an
assumption or it may be true that Sgt. Manos is totally disabled.
It was concluded that Sgt. Manos will be seen by Dr. Stein. A written review of Sgt.
Manos' condition will be submitted. A special meeting of the Pension Board will then be
called as soon as possible.
5. REQUEST APPROVAL FOR RENEWAL OF FIDUCIARY INSURANCE AND
FIDELITY BOND.
Ms. Varney recommended that the Board approve renewal for the fiduciary insurance and
the fidelity bond. Mr. Heffernan inquired if the agent was the same as last year. He
also asked if applications were sent to other companies. Ms. Varney stated that the agent
sent an application to National Union. Their premium was approximately $12,000.00.
Mr. Heffernan expressed concern in the increase of the fiduciary insurance. Since a claim
has never been made, it seemed unusual to see an increase. Ms. Varney replied that
fiduciary insurance was hard to obtain for the government sector.
Mr. Heffernan moved for approval to renew the fiduciary insurance and the fidelity
bond. Mr. Charles seconded the motion. It was passed unanimously.
6. REQUEST APPROVAL OF PAYMENT TO BARNETT BANK
Mr. Walter Latimer moved to approve payment to Barnett Bank in the amount of
$7,764.95 for quarterly management fees ending March 31, 1995. Mr. Richard Trumble
seconded the motion and it was passed unanimously.
• 7. REQUEST APPROVAL OF PAYMENT TO SUN BANK
Mr. Latimer moved to approve payment to Sun Bank in the amount of $9,609.64 for
quarterly management fees ending March 31, 1995. Mr. Trumble seconded the motion
and it was passed unanimously.
8. REQUEST APPROVAL OF MINUTES FROM FEBRUARY 9,1995 MEETING
Mr. Heffernan moved to approve the minutes of the February 9, 1995 Pension Board
Meeting. Mr. Charles seconded the motion. It was passed unanimously.
9. BOARD COMMENTS
Mr. Joseph Charles inquired about the literature received from the Florida Public Pension
Trustees Association. Mr. Charles asked if the Board was entitled to attend the
conference. The Board did not show a great interest in attending.
10. THE MEETING WAS ADJOURNED AT 9:04 A.M.
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